Dana Gas, one of the region’s leading private natural gas businesses, announced that payments from operations in Egypt will climb by 130% in 2021.
Collections in the year to the end of December totaled $184 million, the firm said in a statement to the Abu Dhabi Securities Exchange, where its shares are listed, on Wednesday.
“The payment demonstrates the Egyptian government’s commitment to settling oil and gas businesses’ debts,” said Dana Gas CEO Patrick Allman-Ward.
“The acceleration of payments will strengthen the country’s potential to attract more overseas investment, which will help economic growth.”
Dana Gas is Egypt’s fifth-largest gas producer, producing 29,200 barrels of oil equivalent per day. In the last 14 years, it has committed more than $2 billion in the development of gas resources in the nation. Through its subsidiary Dana Gas Egypt, it operates 14 development leases with a 100% stake and has additional projects in the nation.
The Sharjah-based firm received $39 million in total payments in December, bringing the company’s receivables from the North African country down to less than $30 million, the lowest amount since it began operations in 2007.
“The monies acquired from the Egyptian government offer Dana Gas further confidence in continuing its future investment ambitions in the nation,” said Mr Allman-Ward.
The London Court of International Arbitration decided in favor of Dana Gas earlier this year, upholding the cancellation of an agreement to sell its onshore oil and gas assets.
IPR Wastani Petroleum, a subsidiary of the IPR Energy Group, started the arbitration in April after agreeing to purchase the properties in October of last year.
Dana Gas, on the other hand, terminated the deal in April, claiming that the buyer had failed to satisfy certain terms. Dana Gas stated in July that an IPR Wastani claim was dismissed “in its entirety.”
Dana Gas is also operating in other nations, including Iraq’s Kurdistan area and the United Arab Emirates. The company’s share of revenues from condensate, gas, and liquefied petroleum gas sales in Kurdistan increased 78% to $150 million in the 10-month period, up from $84 million the previous year.
An international arbitration tribunal awarded Dana Gas $607.5 million in damages in a dispute against Iran’s state-owned energy firm in September.
The issue centers on a 25-year gas sales and purchase agreement between Dana Gas subsidiary Crescent Petroleum and the National Iranian Oil Company for a UAE gas project.
Dana Gas posted a record net profit for the nine months ended September 30 as a result of increased oil prices, greater operational efficiency, and other income.
The firm earned $279 million in net profit from January to September, compared to a loss of $379 million in the same time previous year.